Short interest for Invesco Dorsey Wright Consumer Staples Momentum ETF gives investors a sense of the degree to which investors are betting on the decline of Invesco Dorsey Wright Consumer Staples Momentum ETF's stock. Short interest data is updated every two weeks.

Invesco Dorsey Wright Consumer Staples Momentum ETF (NASDAQ:PSL), Short Interest Report

Invesco DWA Consumer Staples Momentum ETF

Invesco Dorsey Wright Consumer Staples Momentum ETF

PowerShares DWA Consumer Staples Momentum Portfolio

WDFC

Earnings

Equities

Mid Cap

News

Guidance

Dividends

PSCC

PowerShares Dynamicnsumer Staples Sector Portfolio

WD-40 Co. reports Q2 revenue of $139.1M, missing consensus of $140.5M. Revenue up 7% Y/Y, gross margin improves, EPS beats estimate. FY24 EPS guidance raised, net sales outlook reiterated.

WD-40&#39;s Mixed Bag Of Q2: Revenue Miss, Strategic Moves, Raised EPS Outlook &amp; More

Long Ideas

Sector ETFs

Commodities

Markets

Trading Ideas

ETFs

Staples ETFs Miss Out On Some Pension Help

Broad U.S. Equity ETFs

New ETFs

DWTR

PowerShares Dynamic Healthcare Sector Portfolio

Investors Are Flocking To This New ETF

Sprott Physical Silver Trust

WD-40 Company&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDFC#NASDAQ">WDFC</a>) reported second-quarter FY24 revenue of $139.1 million, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38171618/wd-40-company-reports-second-quarter-2024-financial-results" rel="noreferrer noopener">consensus of $140.5 million</a>.
Revenue was up 7% Y/Y on growth across all trade blocs. By geographies, net sales in the Americas rose 1% Y/Y, led by growth of the WD-40 Multi-Use Product on increases in Latin America and the U.S.
Also, net sales in EIMEA rose 16% Y/Y, and Asia-Pacific grew 4% Y/Y in the quarter.
Gross margin stood at 52.4%, an improvement from 50.8% in the prior year fiscal quarter. EPS of $1.14&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beat the estimate of $1.11</a>.
Dividend: On March 19, 2024, the board of directors declared a regular quarterly dividend per share of $0.88, payable on April 30, 2024, to stockholders of&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/b37826785/wd-40-company-declares-regular-quarterly-dividend-and-schedules-second-quarter-2024-earnings-confe" rel="noreferrer noopener">record as of April 19, 2024</a>.
Repurchase: From September 1, 2023, through the end of the second quarter, the company bought back shares worth $5.3 million under this $50.0 million plan announced earlier.
Steve Brass, president and chief executive officer, said, &#8220;We have made significant progress against our Four-by-Four strategic framework, including the recent announcement of the acquisition of our Brazilian marketing distributor.&#8221;
&#8220;Today, we are also announcing the decision to pursue a sale of our U.S. and U.K. Homecare and Cleaning Products portfolio, allowing us to focus on our core, higher-margin maintenance products while also creating headspace for future innovation.&#8221;  
FY24 Outlook: The company raised EPS guidance to $5.00-$5.30 (from $4.78-$5.15 earlier)&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/01/36566433/wd-40-posts-q1-earnings-beat-and-reaffirms-full-year-forecast-the-details" rel="noreferrer noopener">vs. consensus of $5.12</a>.
WD-40 reiterated its outlook for net sales at $570 million and $600 million on a non-GAAP constant currency basis (vs.&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">street view of $577.83 million</a>).
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Consumer Staples ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCC#NASDAQ">PSCC</a>) and&nbsp;Invesco Dorsey Wright Consumer Staples Momentum ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSL#NASDAQ">PSL</a>).
Price Action: WDFC shares closed lower by 1.51% at $255.11 on Tuesday.

WD-40's Mixed Bag Of Q2: Revenue Miss, Strategic Moves, Raised EPS Outlook & More

The Consumer Staples Select Sect. SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and other traditional consumer staples exchange-traded funds have recently been scuffling on concerns that the sector is pricey on valuation and in anticipation of the Federal Reserve&#39;s first interest rate hike of 2016.
The Fed proceeded with its first and only interest rate hike of the year last Wednesday, but XLP has climbed more than half a percent over the past week and is higher by about 3.7 percent this month. Still, XLP and rival staples ETFs missed out some potential, albeit modest upside on Monday after a major public pension plan opted to stay away from tobacco investments.
<h3>Pensions' Role</h3>
On Monday, the investment committee for the California Public Employees&#39; Retirement System (CalPERS), the largest public pension plan in the United States, not only opted against getting involved with tobacco stocks again, it extended its ban on such investments to affiliate funds. CalPERS divested its tobacco investments in 2000. To the pension provider&#39;s credit,<a href="https://www.calpers.ca.gov/page/newsroom/calpers-news/2016/votes-expand-tobacco-investment-ban"> it acknowledged</a> &ldquo;tobacco restrictions reduced portfolio returns by approximately $3 billion between 2001 and 2014.&rdquo;
An op-ed in the <a href="http://www.latimes.com/opinion/editorials/la-ed-calpers-tobacco-20161216-story.html">Los Angeles Times</a> put the number closer to $3.7 billion.
<h3>Pension And Tobacco</h3>
CalPERS has also decided to ban tobacco investments for affiliate funds.
&ldquo;CalPERS&#39; Affiliate Funds include the Judges&#39; Retirement System Fund, the Judges&#39; Retirement System II Fund, the Legislators&#39; Retirement System Fund, the Public Employees&#39; Health Care Fund, Supplemental Income Plans, the Public Employees&#39; Long-Term Care Fund, and the California Employers&#39; Retiree Benefit Trust Fund,&rdquo; according to a statement.
The CalPERS decision is relevant to XLP and comparable ETFs because XLP, the largest consumer staples ETF by assets, allocates 16.9 percent of its weight to tobacco stocks. That makes tobacco the ETF&#39;s fourth-largest industry weight. Phillip Morris International Inc. (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>) and Altria Group Inc (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>) are XLP&#39;s third- and fourth-largest holdings respectively.
CalPERS &ldquo;decided in April 2016 to request a review of the current tobacco restrictions. The resulting staff review examined the tobacco restrictions through multiple lenses encompassing a wide range of differing perspectives,&rdquo; the pension provider said.
Some staples ETFs that use smart beta strategies also have significant tobacco exposure. For example, the PowerShares Dynamic Consumer Sta. (ETF) (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), which uses a momentum strategy, has a 12.3 percent weight to tobacco names.
<h3>Non-Tobacco Holding Staples ETFs</h3>
However, not all staples ETFs feature significant tobacco exposure. The First Trust Cnsumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), which focuses on &ldquo;growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets,&rdquo; according to First Trust, only has a 4.7 percent tobacco weight.

With 2015 almost in the books, avid followers of the exchange traded funds industry now know that over 200 new exchange traded products have come to market this year. That is just in the US and the flow of rookie ETFs has not abated simply because it is December.

	This is also the time to evaluate what has worked and what has not among this year&#39;s crop of new ETFs. Some of this year&#39;s most successful new ETFs are backed by <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/12/6055395/goldman-sachs-finds-blueprint-for-etf-success">big Wall Street brands</a>, others are tied to star investors while others have found success the old fashioned way. The old fashioned way be simply offering a concept that is immediately appealing to advisors and investors.

	The PowerShares DWA Tactical Sector Rotation Portfolio (NASDAQ: <a class="ticker" href="/stock/dwtr#NASDAQ">DWTR</a>) fits into the latter category, though it is fair to attribute to some of DWTR&#39;s rapid success to good timing. Through its emphasis on relative strength, there is an element of momentum in DWTER, which has helped the new ETF thrive in a year in which the momentum and growth factors have been sturdy.

	DWTR tracks the Dorsey Wright Sector 4 Index, which &quot;is designed to gain exposure to the strongest relative strength sectors in the US through the universe of nine PowerShares DWA sector Momentum ETFs,&quot;&nbsp;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=DWTR">according to PowerShares</a>.

	In plain English, that means DWTR is an ETF of ETFs, and the funds held by the new ETF are other PowerShares ETFs that follow Dorsey Wright indices. That also means DWTR is likely to be compared to the popular First Trust Dorsey Wright Focus 5 ETF (NASDAQ: <a class="ticker" href="/stock/fv#NASDAQ">FV</a>). However, there are significant differences between DWTR and FV.

	Notably, FV holds five First Trust ETFs while DWTR holds four PowerShares ETFs. Second, DWTR&#39;s relative strength component is rebalanced weekly while FV&#39;s rebalance is conducted on a monthly basis.

	Although DWTR appears to be the more concentrated play by virtue of it holding one less ETF than FV, the PowerShares offering has some advantages. For example, FV has been vulnerable to biotech swoons because it owns a dedicated biotech ETF and another healthcare sector ETF that has heavy biotech exposure. DWTR&#39;s healthcare exposure is limited to its 25.3 percent weight to the PowerShares DWA Healthcare Momentum Portfolio (NYSE: <a class="ticker" href="/stock/pth#NYSE">PTH</a>).

	DWTR&#39;s largest holding is an allocation is a 28.2 percent weight to the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), which is this year&#39;s <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5942807/problem-children-arent-derailing-consumer-staples-etfs">best-performing consumer staples ETF</a>.

	At least for the start of 2016, DWTR&#39;s success hinges on the success of the growth factor as nearly 70 percent is allocated to large-, mid- and small-cap growth stocks.

	Though some market observers are forecasting a big year for low volatility stocks and ETFs in 2016, investors are not shying away from DWTR. The ETF has $127.2 million in assets under management, making it one of the most successful new ETFs of 2015. And of that $127.2 million in AUM, nearly $19 million has arrived in just the past week, a total exceeded by just one other PowerShares ETF over that period, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

Even with all the concern regarding higher interest rates, a scenario that was realized earlier this month, rate-sensitive consumer staples stocks and exchange traded funds have been solid performers in 2015. Two of the 14 Dow Jones Industrial Average Stocks that are up this year are staples stocks:&nbsp;Procter &amp; Gamble Inc. (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and Wal-Mart Stores Inc. (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>).

	Add to that, the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and the Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>) are up 7.7 percent and 6.7 percent, respectively, this year. Those are solid performances, particularly in the face of rising interest rates, but those are from the best showings among staples ETFs. Honors for 2015&#39;s best staples go to the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), which is up 14 percent year-to-date.

	PSL is a smart or strategic beta ETF, meaning it is not capitalization-weighted as are rivals such as XLP and VDC. That also means PSL is not dominated by the likes of Procter &amp; Gamble and Wal-Mart as are XLP and traditional cap-weighted staples ETFs.

	PSL&#39;s stellar year-to-date showing relative to its cap-weighted performers could imply, to some investors, that significant risk is involved with betting on PSL over its more traditional rivals. However, that is not the case. Not only has PSL offered superior returns over standard consumer staples ETFs, the PowerShares offering has posted better risk-adjusted returns. For example, PSL&#39;s volatility this year has been 14.6 percent, according to <a href="http://www.etfreplay.com/charts.aspx">ETF Replay</a>. That is 100 basis points in excess of VDC, but PSL has outpaced the Vanguard Staples ETF by 730 basis points.

	PSL follows the Dorsey Wright Consumer Staples Technical Leaders Index, a benchmark that &ldquo;is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from the NASDAQ US Benchmark Index,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSL">according to PowerShares</a>, the fourth-largest U.S. ETF issuer.

	PSL has swelled in popularity this year. When we highlighted the ETF in late September, it had less than $221 million in assets under management. Since then, PSL&#39;s assets under management tally has surged north of $369 million. <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5859881/bringing-some-excitement-to-consumer-staples-etfs">Only six PowerShares ETFs</a> have added more new assets in 2015 than PSL.

	PSL break from the norm among staples ETFs is okay because over the past year, the Dorsey Wright Consumer Staples Technical Leaders Index has offered nearly double the returns of the S&amp;P 500 consumer staples index and over the past three- and five-year periods, PSL has topped that index. PSL started tracking the Dorsey Wright index early last year.

	PSL&#39;s top 10 holdings include well-known names such as Altria Group Inc. (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>), Constellation Brands Inc. (NYSE: <a class="ticker" href="/stock/stz#NYSE">STZ</a>) and Monster Beverage Corp. (NASDAQ: <a class="ticker" href="/stock/mnst#NASDAQ">MNST</a>).

Intraday Update

MNST

Meet This Year's Best Consumer Staples ETF

Give the Consumer Staples Select Sect. SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) some credit. The largest consumer staples exchange-traded fund by assets is up 6.6 percent year-to-date despite strong dollar headwinds and the subsequent challenges created by speculation, though now dwindling, that the Federal Reserve will soon raise interest rates.
	Add to that, XLP has mustered its <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5875118/its-tempting-to-consider-consumer-staples-etf-right-now">>6.6 percent gain</a>, one of the better year-to-date showings among the nine sector SPDR ETFs, with no help from Procter &amp; Gamble Co. (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) or Wal-Mart Stores, Inc. (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>).
 Procter &amp; Gamble, the world&#39;s largest maker of household products, and Wal-Mart, the world&#39;s largest retailer, are two of just seven members of the Dow Jones Industrial Average down at least 10 percent this year. Procter &amp; Gamble and Wal-Mart are XLP&#39;s largest and sixth-largest holdings, respectively, combining for 16.5 percent of the ETF&#39;s weight.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/15/09/5861263/top-4-nyse-stocks-in-the-beverages-soft-drinks-industry-with-the-highest">Top 4 NYSE Stocks In The Beverages-Soft Drinks Industry</a></bzrelatedlink>
Even with the struggles of Procter &amp; Gamble, Wal-Mart and some other marquee staples stocks, XLP managed to hit an all-time high last week. In fact, it's the so-called "sin stocks" or "problem children" stocks &ndash; such as soft drink and tobacco makers &ndash; are leading staples ETFs higher.
<h3>The 'Sin Stock' Catalysts</h3>
The Dow Jones U.S. Tobacco Index recently hit an all-time high and the Dow Jones U.S. Soft Drink Index is close to doing the same.
&ldquo;Also in the beverage arena, soft drink companies have been strong. As a group, they too currently look to be in position to make a run at all-time highs once they break out of what looks like a bull flag on the chart,&rdquo; said Dana Lyons of J. Lyons Fund Management in a <a href="http://jlfmi.tumblr.com/post/131538206620/will-vice-stocks-out-performance-put-clamps-on">recent blog post</a>.
<h3>What This Means For XLP</h3>
That is good news for XLP. The ETF allocates nearly 37 percent of its combined weight to <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/07/5712851/a-tobacco-reunion-would-be-huge-for-consumer-staples-etfs">beverage and tobacco stocks</a>.
Dow component The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), Philip Morris International Inc. (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>), Altria Group Inc (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>) and PepsiCo, Inc. (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) are all top 10 holdings in the ETF.
<h3>Two Other 'Sin'-Filled ETFs</h3>
The PowerShares Dynamic Food &amp; Beverage(ETF) (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>) is another option to consider. As a dedicated food and beverage ETF, PBJ features no tobacco stocks.
 However, PBJ&#39;s combined weight to PepsiCo, Coca-Cola Bottling Co. Consolidated (NASDAQ: <a class="ticker" href="/stock/coke#NASDAQ">COKE</a>) and Dr Pepper Snapple Group Inc. (NYSE: <a class="ticker" href="/stock/dps#NYSE">DPS</a>) is 11.6 percent.
 PBJ is up nearly 12 percent.
The PowerShares Dynamic Consumer Sta. (ETF) (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>) is another staples ETF to consider for investors looking for beverage and tobacco exposure.
 PSL, a momentum-based ETF, allocates nearly 27 percent of its combined weight to beverage and tobacco names. PSL is home to 42 stocks and six of its top 10 holdings are either <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5859881/bringing-some-excitement-to-consumer-staples-etfs">tobacco, spirits or soft drink</a> makers.
Knowing that, perhaps it is not surprising that PSL is this year&#39;s top-performing staples ETF. Investors have added <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">$231.6 million to PSL</a> this year, a total exceeded by just six other PowerShares ETFs.
Image Credit: <a href="https://pixabay.com/en/portrait-child-hands-317041/">Public Domain</a>

COKE

Problem Children Aren't Derailing Consumer Staples ETFs

Throughout 2015, investors have heard plenty about the momentum factor outperforming its value counterpart. Exchange-traded funds easily prove as much. For example, the $947.7 million iShares MSCI USA Momentum Factor ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/mtum#NYSE">MTUM</a>)) is up nearly 6 percent, while the S&amp;P 500 is higher by just 0.8 percent year-to-date.
Logically speaking, it is not surprising that the momentum factor&#39;s out-performance of other investment factors extends to the sector level. At least four of this year&#39;s top 10 non-leveraged sector ETFs can be considered momentum funds, and six of the nine PowerShares sector ETFs that follow momentum-based Dorsey Wright indices are outperforming their cap-weighted counterparts, according to <a href="http://alletf.com/">Dorsey Wright</a> data.
<h3>Outperformance: A Closer Look At PSL</h3>
That includes the PowerShares Dynamic Consumer Sta. (ETF) (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>). PSL, this year&#39;s top-performing consumer staples ETF, is up nearly 12 percent on the year. Last year, PowerShares, the fourth-largest U.S. ETF sponsor, transitioned 10 ETFs, including nine sector funds, to Dorsey Wright <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5859881/bringing-some-excitement-to-consumer-staples-etfs">momentum benchmarks</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5902268/the-final-four-new-etf-focuses-on-four-momentum-funds">The Final Four: New ETF Focuses On Four Momentum Funds</a></bzrelatedlink>
Many cap-weighted sector funds are relegated to holding only large caps, perhaps with sprinkles of mid and small caps, but the PowerShares sector funds can include all three cap spectrums.
	&ldquo;Also, keep in mind that the number of stocks in each momentum sector ETF can range from approximately 30-75. When small caps have better relative strength we will tend to have more holdings and when large caps are in favor we will tend to have fewer holdings,&rdquo;<a href="http://seekingalpha.com/article/3587696-q4-sector-momentum-composition"> noted Dorsey Wright</a>.
<h3>Outperforming Peers</h3>
In addition to PSL, other examples of out-performing PowerShares sector funds include the PowerShares Dynamic Tech Sec (ETF) (NYSE: <a class="ticker" href="/stock/ptf#NYSE">PTF</a>) and the PowerShares Dynamic Finl Sec Fnd (ETF) (NYSE: <a class="ticker" href="/stock/pfi#NYSE">PFI</a>).
Though PTF, the technology fund, features exposure to some of that sector&#39;s most familiar large caps, the ETF allocates just 19.2 percent of its weight to large stocks.
<h3>Gaining Exposure</h3>
A solution exists for investors looking to gain access to multiple momentum-based sector ETFs under one umbrella. The PowerShares DWA Tactical Sector Rotation Portfolio (NASDAQ: <a class="ticker" href="/stock/dwtr#NASDAQ">DWTR</a>), which debuted earlier this month, is an ETF of ETFs that holds the four PowerShares sector ETFs tracking DWA indices currently displaying the <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5902268/the-final-four-new-etf-focuses-on-four-momentum-funds">best relative strength characteristics</a>.
The aforementioned PSL and PTF combine for nearly half of DWTR&#39;s weight. Advisors and investors have quickly warmed to DWTR&#39;s story as the ETF is just two weeks with $30.7 million in assets under management.
Image Credit: <a href="https://pixabay.com/en/spherical-ball-joint-newton-pendulum-746194/">Public Domain</a>

MTUM

PowerShares Dynamic Financial Sector Portfolio

Powershares Dynamic Technology Securitytor Portfolio

Momentum Is Working At The Sector Level

A phenomenon that has caught plenty of market observers by surprise this year is the outperformance of the momentum factor <a href="http://www.benzinga.com/general/education/15/09/5832937/finding-value-in-value-etfs">over its value counterpart</a>. Momentum can take on multiple forms and it is not limited to glitzy biotechnology and Internet stocks.

	However, it is some of those glitzy Internet stocks that have driven the impressive returns accrued by the consumer discretionary group, this year&#39;s top-performing S&amp;P 500 sector.
<h3>
	Don&#39;t Be Surprised</h3>

	&quot;The strength of consumer discretionary stocks is not altogether surprising, given the strength of the labor market. Wage and salary growth is up 4.0% since last August, and consumers&rsquo; assessment of the job market is also favorable. According to The Conference Board, the spread between those stating that jobs are &quot;plentiful&quot; and those claiming that jobs are &quot;hard to get&quot; was 0.8 in September &ndash; the widest chasm in sentiment since the spring of 2008,&quot; said PowerShares, the fourth-largest U.S. ETF issuer, <a href="http://www.blog.invesco.us.com/gaining-momentum-sector-returns-and-outlook">in a recent note</a>.

	The PowerShares DWA Consumer Cyclicals Momentum Portfolio (NYSE: <a class="ticker" href="/stock/pez#NYSE">PEZ</a>) has returned 4.1 percent year-to-date. PEZ, which is home to 38 stocks and $211.4 million in assets under management, is not the traditional consumer discretionary ETF. The fund tracks a momentum-based index and, perhaps surprisingly, allocates a scant 4.5 percent of its weight to Internet stocks. Five other industry groups command larger weights in PEZ.

	Due in large part to the energy sector&#39;s significant contraction, third-quarter S&amp;P 500 earnings growth is expected to be mediocre. However, earnings growth is expected to be strong in 2016, led by the consumer discretionary and healthcare sectors.

	&quot;Looking ahead, analysts surveyed by Bloomberg as of Oct. 2, 2015 expect the strongest growth in 2016 to come from the consumer discretionary and health care sectors,&quot; notes PowerShares.
<h3>
	Newest Play</h3>

	That could prove to be good news for the PowerShares DWA Tactical Sector Rotation Portfolio (NASDAQ: DWTR), which&nbsp;<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5902268/the-final-four-new-etf-focuses-on-four-momentum-funds">debuted last Friday</a>. DWTR tracks the Dorsey Wright Sector 4 Index, which &quot;is designed to gain exposure to the strongest relative strength sectors in the US through the universe of nine PowerShares DWA sector Momentum ETFs,&quot;&nbsp;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=DWTR">according to PowerShares</a>.

	The new ETF holds four other PowerShares ETFs that track Dorsey Wright momentum indexes, including PEZ and the $225.4 million PowerShares DWA Healthcare Momentum Portfolio (NYSE: <a class="ticker" href="/stock/pth#NYSE">PTH</a>). PTH is a pseudo biotech ETF as that industry accounts for almost 51.5 percent of the fund&#39;s weight.

	PEZ and PTH combine for nearly 51 percent of DWTR&#39;s weight and do not forget DWTR&#39;s largest holding, the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>). PSL is arguably the closest thing to &quot;sexy&quot; among consumer staples ETFs, but there is no arguing with its recent track record. PSL is&nbsp;<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5859881/bringing-some-excitement-to-consumer-staples-etfs">this year&#39;s top-performing</a> consumer staples ETF with a gain of over 10 percent.

Specialty ETFs

PowerShares Dynamicnsumer Discretionary Sector Portfolio

Riding The ETF Momentum Into 2016

The momentum factor has delivered surprising out-performance of its value rival this year, and there is no shortage of momentum-based exchange-traded funds investors can use to exploit that trend.
Also, there is a new kid on the block worth considering.
<h3>New ETF</h3>
	The PowerShares DWA Tactical Sector Rotation Portfolio (NASDAQ: DWTR) debuted Friday, becoming the latest in a long line of PowerShares ETFs backed by Dorsey Wright&#39;s widely followed, momentum-based methodology.
 Illinois-based PowerShares is a unit of Invesco Ltd. (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>), and is the fourth-largest U.S. ETF issuer.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5900689/long-term-investors-should-get-to-know-this-equal-weight-etf">Long-Term Investors Should Get To Know This Equal-Weight ETF</a></bzrelatedlink>

	DWTR tracks the Dorsey Wright Sector 4 Index, which &ldquo;is designed to gain exposure to the strongest relative strength sectors in the US through the universe of nine PowerShares DWA sector Momentum ETFs,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=DWTR">according to PowerShares</a>.

	In plain English, that means DWTR is an ETF of ETFs, and the funds held by the new ETF are other PowerShares ETFs that follow Dorsey Wright indices.
<h3>DWTR's ETFs</h3>
 The four ETFs currently held by DWTR range in weight from 21.4 percent to almost 27.9 percent. DWTR&#39;s holdings are as follows: The PowerShares Dynamic Consumer Sta. (ETF) (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), PowerShares Dynamic Consumer Disc. (ETF) (NYSE: <a class="ticker" href="/stock/pez#NYSE">PEZ</a>), PowerShares Dynamic Healthcare Sec (ETF) (NYSE: <a class="ticker" href="/stock/pth#NYSE">PTH</a>) and the PowerShares Dynamic Tech Sec (ETF) (NYSE: <a class="ticker" href="/stock/ptf#NYSE">PTF</a>).

	Last year, PowerShares transitioned nine sector ETFs to Dorsey Wright momentum indices, including the four aforementioned ETFs that comprise the new DWTR&#39;s lineup.

	As one example, PSL, <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5859881/bringing-some-excitement-to-consumer-staples-etfs">2015&#39;s top-performing consumer staples ETF</a>, follows the Dorsey Wright Consumer Staples Technical Leaders Index, a benchmark that &ldquo;is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from the NASDAQ US Benchmark Index,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSL">according to PowerShares</a>.
<h3>PowerShares And Dorsey Wright Indices</h3>
The nine PowerShares sector ETFs that follow Dorsey Wright indices make up the universe from which DWTR&#39;s holdings can come from.
&ldquo;The Index contains a cash element to maximize the impact of the momentum factor. The Index holds only the four strongest of the nine sectors based on relative strength indicators, while the portfolios underlying the sectors implement a methodology that weights constituents based upon price momentum instead of traditional market capitalization. Momentum investing may include securities which are more volatile than the market as a whole, and can produce returns less than other investment style,&rdquo; according to PowerShares.
DWTR&#39;s index evaluates sector rankings monthly. If a sector falls out of the top four, it is sold and replaced by the highest-ranking sector not currently in the index. The new ETF came to market well-heeled with $25 million in assets. DWTR charges 0.75 percent per year, or $75 for every $10,000 invested.
Image Credit: <a href="https://pixabay.com/en/spherical-ball-joint-newton-pendulum-746194/">Public Domain</a>

The Final Four: New ETF Focuses On Four Momentum Funds

Broadly speaking, the consumer staples sector, the sixth-largest sector weight in the S&amp;P 500, is not known for growth and excitement. If anything, investors looking to embrace the likes of Procter &amp; Gamble Co. (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>), The&nbsp;Coca-Cola Co&nbsp;(NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and Wal-Mart Stores, Inc. (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>) are arguably looking to avoid too much excitement.

	However, there are ways to for investors to capture growth and momentum with staples, a sector not often known for those traits. In fact, momentum is a fine place to be right now because that investment factor is outperforming value by a wide margin this year. Among staples exchange traded funds rooted in momentum, there is the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>).

	With a year-to-date gain of just over 8 percent, PSL is easily outperforming its cap-weighted counterparts, its primary equal-weight rival and the thumping First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), another smart beta spin on the staples sector. Put simply, to this point in 2015, PSL is the year&#39;s top-performing consumer staples ETF.
<h3>
	A Closer Look</h3>

	PSL follows the Dorsey Wright Consumer Staples Technical Leaders Index, a benchmark that &ldquo;is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from the NASDAQ US Benchmark Index,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSL">according to PowerShares</a>, the fourth-largest U.S. ETF issuer.

	Related Link:<a href="http://www.benzinga.com/general/biotech/15/09/5858391/traders-bet-against-hillary-with-leveraged-biotech-etf"> Traders Bet Against Hillary With Leveraged Biotech ETF</a>

	With its emphasis on momentum, the $220.7 million PSL features some significant departures from traditional cap-weighted staples ETFs when it comes to individual holdings. For example, none of PSL&#39;s 32 holdings command weights in excess of 4.9 percent and only the<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/07/5712851/a-tobacco-reunion-would-be-huge-for-consumer-staples-etfs">&nbsp;two tobacco stocks</a> found among the ETF&#39;s top 10 holdings would also be likely to be found among the top holdings in traditional staples ETFs.&nbsp;

	Run-of-the-mill staples ETFs are usually excessively allocated to large- and mega-cap stocks, but PSL allocates less than a quarter of its weight to large caps. Rare is the staples ETF that features a stock like Monster Beverage Corp. (NASDAQ: <a class="ticker" href="/stock/mnst#NASDAQ">MNST</a>) among its top 10 holdings and rare is the staples fund that allocates more than half its weight to mid caps, but PSL is that fund.

	Investors looking for a staples ETF that holds traditional fare such as Procter &amp; Gamble and Coca-Cola should eschew PSL because the fund does not own those stocks. That is okay because over the past year, the Dorsey Wright Consumer Staples Technical Leaders Index has offered nearly double the returns of the S&amp;P 500 consumer staples index and over the past three- and five-year periods, PSL has topped that index. PSL started tracking the Dorsey Wright index early last year.

	Investors are clearly warming to PSL&#39;s story as the ETF has hauled in $150.6 million of its $220.7 million in assets under management just this year, a total topped by just 11 other PowerShares ETFs, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

Bringing Some Excitement To Consumer Staples ETFs

It may not happen, but if tobacco giants Phillip Morris International Inc&nbsp;(NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>) and Altria Group Inc&nbsp;(NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>) merged, it will be a boon for consumer staples exchange traded funds such as the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>).

	It&#39;s just speculation for now, but as <a href="http://www.bloomberg.com/news/articles/2015-07-28/altria-philip-morris-should-become-one-company-again-real-m-a?cmpid=yhoo">Bloomberg</a> notes, following Reynolds American&nbsp;(NYSE: <a class="ticker" href="/stock/rai#NYSE">RAI</a>)&#39;s recently completed $28 billion acquisition of Lorillard, pickings are slim for acquirers in the tobacco industry leaving Phillip Morris and Altria to possibly consider getting remarried.

	Figuratively speaking, that reunification would be a big deal as Phillip Morris and Altria had market values of $132.6 billion and $108.6 billion at Tuesday&#39;s close. The stocks are the third- and sixth-largest holdings in XLP, the largest consumer staples ETF, combining for almost 13 percent of the ETF&#39;s weight.

	The consumer staples sector is not on par with healthcare in terms of the steady influx of almost weekly mega-deals, but staples are not foreign to the concept, either. Earlier this year, Heinz and Kraft came together in a roughly $49 billion deal, creating Kraft Heinz Co (NASDAQ: <a class="ticker" href="/stock/khc#NASDAQ">KHC</a>). In February 2013, Brazilian private equity shop 3G and Warren Buffett&#39;s Berkshire Hathaway (NYSE: <a class="ticker" href="/stock/brk-b#NYSE">BRK-B</a>) teamed up to pay $23 billion for Heinz. Kraft Heinz is XLP&#39;s 12th-largest holding at almost 2.6 percent of the ETF&#39;s weight.

	Still, XLP has also been fertile ground for deals that have never come to pass, such Nelson Peltz&#39;s proposed PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) for Mondelez (NASDAQ: <a class="ticker" href="/stock/mdlz#NASDAQ">MDLZ</a>) idea. On the other hand, CVS Health Corp&nbsp;(NYSE: <a class="ticker" href="/stock/cvs#NYSE">CVS</a>) has been a savvy shopper and Walgreen Boots Alliance (NYSE: <a class="ticker" href="/stock/wba#NYSE">WBA</a>) is the combination of a merger.

	Investors looking for a staples ETF that could see some deal-making, though not par with an Altria/Phillip Morris marriage, can consider the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>).

	The $139.3 PowerShares DWA Consumer Staples Momentum Portfolio, which weights its 32 holdings based on momentum factors, not market value, houses&nbsp;<a href="http://www.etftrends.com/2015/07/a-staples-etf-soars-above-its-rivals/">several credible takeover targets</a>, including Hain Celestial (NASDAQ: <a class="ticker" href="/stock/hain#NASDAQ">HAIN</a>), Monster Beverage Corporation (NASDAQ: <a class="ticker" href="/stock/mnst#NASDAQ">MNST</a>) and&nbsp;WhiteWave Foods (NYSE: <a class="ticker" href="/stock/wwav#NYSE">WWAV</a>).

	Plus, if Altria is acquired, PSL will not be left out in the cold. The ETF allocates over 9 percent of its weight to tobacco stocks, all of which is devoted to Altria and Reynolds American, and Altria is PSL&#39;s largest holding at a weight of almost 5 percent, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSL">according to PowerShares data.</a>

Rumors

A Tobacco Reunion Would Be Huge For Consumer Staples ETFs

The Sharpe ratio, a risk measurement and management tool named for Nobel laureate William F. Sharpe, is as easy to explain as it is important. At its core, the Sharpe Ratio tells investors whether a portfolio's success is due to <a href="http://www.investopedia.com/terms/s/sharperatio.asp#axzz2IAj9IwaV">savvy investment decisions or taking on unnecessary risk</a>.

Calculated by subtracting the risk free rate – such as the returns offered by short-term Treasuries – from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns, according to Investopedia, the Share Ratio tells investors just how good a portfolio's risk-adjusted performance has been. 

A high Sharpe Ratio indicates good risk-adjusted performance while a low Sharpe Ratio indicates investors would have been better off with a more conservative investment vehicle. 

Since equity-based ETFs are baskets of stocks, or portfolios themselves, using the Sharpe Ratio to find winning funds makes sense. What follows just a few of the ETF this Sharpe Ratio screen. Screen parameters: Sharpe Ratio of 0.5 and higher, three-year total returns of at least 10 percent, expense ratio of below one percent and a beta against the S&amp;P 500 of no higher than 1.5. Please note this screen was <a href="https://research.zecco.com/research/etf-screener.asp">run on Zecco</a>, which near as we could tell, offers one of the only free Sharpe Ratio screeners.

Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>)
The aforementioned screen turned up 230 and equity-based ETFs and perhaps not surprisingly, nearly 10 percent of that group hails from the Vanguard family. VIG is already the largest dividend ETF by assets, but that shallow metric does not indicate the fund's true worth to conservative investors, but the screen does.

VIG has an expense ratio of just 0.13 percent, making it less expensive than 88 percent of comparable funds, <a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0920&amp;FundIntExt=INT">according to Vanguard</a>. VIG's beta against the S&amp;P 500 is just 0.82 percent and that does not come by virtue of an excessive weight to utilities names, a favorite beta-reducing trick of some ETFs. That sector accounts for just 1.8 percent of VIG's weight.

With a Sharpe Ratio 0.85, VIG has gained almost 11 percent in the past three years.

iShares MSCI Thailand Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/thd#NYSE">THD</a>)
While the screen did not turn out to be heavy on emerging markets ETFs, the total number that met the criteria was decent and those funds that did make the cut offer investors exposure to both Asian and Latin American developing markets.

As is the case with VIG, THD's inclusion on this list probably is not a surprise to those that are familiar with the fund. The lone Thailand-specific ETF has been one of the best-performing ETFs of any type <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3208282/10-for-13-emerging-markets-etfs-for-2013">since the March 2009 market bottom</a>. Fees of 0.6 percent mean THD comes cheaper than the comparable China fund.

THD's Sharpe Ratio, according to Zecco data, is 1.1, meaning it is double that of the Sharpe Ratio on the supposedly more conservative iShares MSCI South Korea Index Fund (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>).

First Trust NASDAQ-100 Equal Weighted Index (NASDAQ: <a class="ticker" href="/stock/qqew#NASDAQ">QQEW</a>)
An underrated way of grabbing technology sector exposure <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3249669/apples-slide-highlights-advantages-of-equal-weight-etfs">while dodging single-stock risk</a> QQEW has recently performed better than some marquee tech ETFs, such as the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>).

However, there is more to QQEW's story. In addition to a solid Sharpe Ratio of 0.61, QQEW offers investors a low price/cash flow ratio of 11.08, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=QQEW">according to First Trust data</a>. That is relevant because securities with low price/cash flow ratios <a href="http://www.thepatternsite.com/CashFlow.html">have a tendency to outperform those with high price/cash flow ratios</a>. 

Other ETFs that appeared in the screen with Sharpe Ratios above follow here with the Sharpe Ratios after the tickers: First Trust Morningstar Dividend Leaders Index Fund (NYSE: <a class="ticker" href="/stock/fdl#NYSE">FDL</a>) 1.2, iShares NASDAQ Biotechnology Index Fund (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) 1.14, PowerShares Dynamic Cosnumer Discretionary Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), 1.1, Guggenheim S&amp;P 500 Equal Weight Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/rhs#NYSE">RHS</a>) 1.29 and the WisdomTree Dividend Ex-Financials Fund (NYSE: <a class="ticker" href="/stock/dtn#NYSE">DTN</a>) 1.21.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Short Ideas

Emerging Market ETFs

Technicals

First Trust Morningstar Dividend Leaders Index Fund

First Trust NASDAQ-100 Equal Weighted Index Fund

QQEW

Rydex ETF Trust Rydex S&P Equal Weightnsumer Staples ETF

iShares MSCI Thailand Investable Market Index Fund

Use The Sharpe Ratio For Profits With These ETFs

Topics

Global

General

SPDR S&P Internationalnsumer Staples Sector ETF

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

iShares S&P Globalnsumer Staples Sector Index Fund

Top 10 U.S. & Global Consumer Staples ETFs

The surge in correlations has been well-documented recently. Just last week, various media outlets reported sector correlations had risen to highs not seen since the days around the time Lehman Brothers collapsed. That was later followed by the anecdote that correlations were resting at levels not seen since 1987.

Translation: Finding shelter from the market's recent storm is a trying task because almost every sector and asset class is moving in lockstep with each other. 

Even consumer staples stocks and ETFs, usually a favorite hiding place for investors during volatile market environments, have fallen prey to the correlation conundrum. Still, investors hungry to be long a conservative sector could find some profitable opportunities in the staples space beyond the usual suspects such as the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>).

Here are five consumer staples ETFs your broker probably forgot to mention.

PowerShares Dynamic Food &amp; Beverage Portfolio (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>):
The PowerShares Dynamic Food &amp; Beverage ETF isn't really ignored. It just doesn't get the press that XLP gets. That said, PBJ is a sound niche alternative for investors looking to focus their staples attention more narrowly on food and drink makers. Top PBJ holdings include General Mills (NYSE: <a class="ticker" href="/stock/gis#NYSE">GIS</a>) and Hershey (NYSE: <a class="ticker" href="/stock/hsy#NYSE">HSY</a>).

PowerShares Dynamic Consumer Staples Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>): 
PSL is a more direct rival to XLP, but there are some noteworthy differences. PSL's expense ratio is more than triple XLP's, but the PowerShares offering spreads stock allocations around more evenly. In addition, PSL is NOT a quasi Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) proxy. PSL also has a little more growth stock exposure with allocations to the likes of Diamond Foods (Nasdaq: <a class="ticker" href="/stock/dmnd#Nasdaq">DMND</a>) and Casey's General Stores (Nasdaq: <a class="ticker" href="/stock/casy#Nasdaq">CASY</a>).

PowerShares S&amp;P SmallCap Consumer Staples Portfolio (Nasdaq: PSCC):
For those looking for a more adventurous way to play the staples space, the PowerShares S&amp;P Consumer Staples Portfolio is the ETF to consider. Not really a dividend play, but this is a growth play. Diamond and Casey's account for 16% of this ETF's weight. This fund will be a preferred option once fund managers re-embrace small caps.

EGShares Consumer Goods GEMS ETF (NYSE: <a class="ticker" href="/stock/ggem#NYSE">GGEM</a>):
EGShares focuses solely on emerging markets ETFs and the newly minted GGEM is the firm's answer for staples exposure. If PSCC looks like an adventurous play, than GGEM is an adrenaline rush in this market environment. There's nothing wrong with some international exposure in the staples group, but buyer beware: The EGShares Consumer Goods GEMS ETF allocates a combined 38% of its weight to India and Brazil.

FocusShares Morningstar Consumer Defensive ETF (NYSE: FCD):
The FocusShares Morningstar Consumer Defensive ETF really flies under the radar, but that's not a surprise as the ETF is less than nine months old. In terms of top-10 holdings, this fund is not much different than XLP or PSL.

Small Cap Analysis

CASY

DMND

GGEM

Five Staples ETFs Your Broker Forgot To Mention

Here is the ETF Professor's ETF Watch List for Friday May 20, 2011.

Above $26, the Market Vectors Rare Earth/Strategic Metals ETF (NYSE: <a class="ticker" href="/stock/remx#NYSE">REMX</a>) is attractive.

Defense plays of the day: iShares S&amp;P Global Healthcare Index Fund (NYSE: <a class="ticker" href="/stock/ixj#NYSE">IXJ</a>) and the PowerShares Dynamic Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>).

Commodities plays: ETFS Physical Palladium Shares (NYSE: <a class="ticker" href="/stock/pall#NYSE">PALL</a>) and the U.S. Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>)

Emerging markets plays of the day: Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>), Global X FTSE ASEAN 40 ETF (NYSE: <a class="ticker" href="/stock/asea#NYSE">ASEA</a>) and the ProShares UltraShort MSCI Emerging Markets (NYSE: <a class="ticker" href="/stock/eev#NYSE">EEV</a>).

Forex play of the day: CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>).

Bond play of the day: iShares iBoxx $ High Yield Corporate ETF (NYSE: <a class="ticker" href="/stock/hyg#NYSE">HYG</a>).

Currency ETFs

Pre-Market Outlook

ASEA

ProShares UltraShort MSCI Emerging Markets

iShares Trust S&P Global Healthcare Sector Index Fund

PALL

Market Vectors Rare Earth/Strategic Metals Etf

REMX

ETFs To Watch May 20, 2011 (IXJ, ASEA, FXF, HYG)

This isn't going to be one of those times when we ask the lame question "Market volatility got you down?" because, and let's be honest here, unless you own one of those fancy algorithm trading systems where the computer does all the work, market volatility can be a pain in the neck.

For equity investors, one tonic can be found with boring consumer staples stocks so we have a well-timed ETF Showdown that is a play on the "boring is beautiful" theme. After all, that's exactly why now might just be a good time to embrace the staples: Because they are beautifully boring.

Enther the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and its less-heralded rival, the PowerShares Dynamic Consumer Staples Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>).

As we've seen in previous SPDR/PowerShares Showdowns, the same is often different. Meaning, XLP and PSL offer exposure to the same sector and the same stocks, but in very different ways. One of the hallmarks of many PowerShares equity <a href="http://www.marketbulletin.com/etf.php">ETFs</a> is that the allocation is spread across many names with no one stock getting an excessive weight.

That's the case with PSL as well. Sixty stocks are found in this ETF with CVS Caremark (NYSE: <a class="ticker" href="/stock/cvs#NYSE">CVS</a>) getting the largest weight at 2.59%. On the other hand, XLP tracks about 40 stocks and Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) accounts for 14.4% of the ETF's weight. In fact, Walgreen (NYSE: <a class="ticker" href="/stock/wag#NYSE">WAG</a>), XLP's tenth-largest holding, gets a bigger weight here than CVS gets in PSL.

Oddly enough, P&amp;G, the largest consumer products company in the world, isn't even in PSL's top-10 holdings. Both ETFs offer exposure to varying degrees to the other usual staples suspects, such as Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and Altria (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>), meaning either fund is an indirect dividend play. The earnings spigot for staples is set to open next week and there should be some positive news from XLP and PSL's holdings.

Speaking of beverage stocks, if you own the PowerShares Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>), you don't need PSL because the ETFs offer exposure to many of the same companies with comparable weights. 

Settling this week's Showdown is actually pretty easy because we're going to be a tad superficial: If you want staples exposure, you should probably aim for more than just slight exposure to P&amp;G and XLP more than covers you there. In addition, PSL's net expense ratio (0.65%) is more than triple XLP's gross expense ration (0.2%). Make XLP your staple among staples.